Structural Equation Model of the Relationship between Project Performance Measures and the Critical Success Factors of Construction Projects: A Case of the Nigerian Construction Industry
Keywords:
Project performance measures, critical success factors, construction projects, structural equation modelAbstract
This study investigated the relationship between project performance measures and the critical success factors (CSFs) of construction projects for the construction industry in Nigeria. Survey research method was adopted using questionnaire as the primary instrument for data collection. The questionnaire was designed to collect data on 19 project management performance measures and 54 CSFs on a five point Likert scale. Altogether, 250 questionnaires were distributed to contractors, clients and consultants from 10 construction companies, out of which a total of 221 valid responses were obtained. The data collected was input into the SPSS 25 statistical software package where Crombach’s alpha test was carried out on the constructs to determine their appropriateness for structural equation model (SEM). The data was finally imported from SPSS to LISREL where the final analysis was carried out using T-values and goodness of fit (GOF) indices. The SEM showed a high level of relationship between the project performance and the CSFs. This was shown by the justification of five out of the nine sub-hypotheses used for the data analysis with T-values greater than 1.96. These are: Client related factors directly influenced project performance, External environment factors directly influenced the project performance, Contractor related factors directly influenced the project success, Project planning and management factors indirectly influenced the customer satisfaction, and Project manager related factors directly influenced the project performance. Therefore, the null hypothesis that there is no significant relationship between project performance measures and the CSFs was rejected.
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